I propose to take Questions Nos. 581 and 586 together.
The shared ownership scheme offers home ownership in a number of steps to purchasers who cannot afford full ownership in the traditional way. Initially, ownership is shared between the purchaser who buys at least 40% of the value of the house and the local authority from whom the purchaser rents the remaining share. The present maximum loan, in all areas, that a local authority may advance in respect of the purchased equity in a house is €130,000. Under the terms of the scheme, a loan of this amount can facilitate the purchase of houses at the level of average house prices nationally or above. It is a matter for local authorities, in operating the scheme, to determine the maximum house price limits having regard, inter alia, to the ability of applicants to meet the mortgage and rent commitments involved.
My Department is keeping the terms of the income and loan limits for the shared ownership and the 1999 affordable housing schemes under review. Account shall be taken of a movement in house prices, the effectiveness of various schemes to meet the needs of the relevant target group and the availability of mortgage finance in the private sector. Work is continuing with representatives of the Irish Mortgage Council and the Irish Financial Services Regulatory Authority on the provision of finance by the lending institutions for affordable housing and other initiatives.
